The Nexus between Economic Growth and Financial Development in the Case of Tajikistan

• Main Author: Zaynidin, Fariduni
• Other Authors: Fethi, Sami
• Format: Master Thesis
• Language: English
• Published: Eastern Mediterranean University (EMU) - Doğu Akdeniz Üniversitesi (DAÜ) 2015
• Subjects: Banking and Finance; Banks and Banking - Tajikistan; Economic Conditions and Development - Tajikistan; Economic Growth; ARDL model; Bounds test; Tajikistan economy; Money supply; domestic credit; finance and banking sectors; sami
• Online Access: http://hdl.handle.net/11129/3652

This thesis investigates the nexus between the economic growth and financial development as well as banking development sectors for the Tajikistan Economy. ARDL bounds testing approaches are conducted for analyzing a growth model over the period 1991Q1- 2013Q4. The empirical results suggest that financial development is a very important driving force for the economic growth in both the long and the short-terms of Tajikistan’s economy. This finding also shows that Capital does not have any impact on the output growth, whereas labor, money supply, and domestic credit provided by financial sector have a positive influence on economic growth in the case of Tajikistan’s economy. However the results reveal that there is a positive relationship between the economic growth and the financial development sector. The empirical results confirm that there is also a relationship between the economic growth and the banking development sector in Tajikistan. Keywords: Economic Growth, ARDL model, Bounds test, Tajikistan economy. Money supply, domestic credit, finance and banking sectors. ÖZ : Bu tez ampirik olarak Tacikistan ekonomisindeki ekonomik büyüme ile finansal gelişimi arasındaki uzun ve kısa dönemli ilşkiyi otoregresif dağıtılmış gecikme test ile ölçer (ARDL). Otoregresif dağıtılmış gecikme testi kullanılarak 1991Q1 ile 2013Q4 yılları arasında Tacikistan’nın ekonomik büyümesi incelenmiştir. Ampirik bulguların finansal büyümede hem uzun hem de kısa dönemli ekonomik büyüme üzerinde etkili olduğu belirlenmiştir. Bulgular ayrıca fiziksel sermayenin ekonomik büyüme üzerinde hiçbir etkisi olmadığı ispatlamıştır. Bunun paralelinde Tacikistan ekonomisinde iş gücünün, para arzının ve yurtiçi kredinin ekonomik büyümeyi pozitif yönde etkilediği bulunmuştur. Anahtar kelimeler: Ekonomik büyüme; otoregresif dağıtılmış gecikme testi (ARDL); para arzı, Tacikistan ekonomisi, yurtiçi kredisi, finansal ve bankacılık sektörü. Master of Science in Banking and Finance. Thesis (M.S.)--Eastern Mediterranean University, Faculty of Business and Economics, Dept. of Banking and Finance, 2015. Supervisor: Prof. Dr. Sami Fethi.